CIBC - 5 yr @ 3.25% | Page 7 | GIC discussions | Discussion forum

The escalating 3.04% effective rate is also still available at Investor Edge for those who has account there. But I rather put it into a 1 year at 2% elsewhere, and then lock into a higher rate when it matures. Losing 1.04% in the first year vs the 3.04% avail right now, but only need 3.26% or better when renew for a 4 years to be better off. The odds are in favor of the 1y instead of 5y in my mind.

bhuc said
The CIBC posted 5 yr bonus rate GIC as of today is 3.0 % .
However, after talking to a fin rep at my local CIBC, if the proposed GIC deposit amount is substantial (6 figure amount ) they may offer an additional +0.5 % bringing it up to 3.5%. It maybe worth a phone call. It's also worth mentioning that these bonus rates could change at anytime and have already done so once.

Even after the interest rate hikes planned for 2022 by the BOC, 3.5% for 5years isn't to shabby,
The BOC has also indicated that inflation will return to 2% in 2023.

But time will tell !

  

Not sure what they will consider as substantial, but a 50bps bonus is huge by any standard, I have only seen 25bps bump regardless of size.

BOC "wishes" inflation to come back down to 2% by 2023, thats what they really mean 🙂

The thing is: What if the rates start to go up next month with indicators that it will keep going in the near future. Are we going to sit at 1.25%-2.0% because we don't want to lock in on the belief rates are going to keep getting better & better the next year and the next? That's the big question. Most of us on here I believe have taken advantage of laddering so many times a year something is coming due and the "new" fantastic rates can be applied to them. How old are we going to live to?

I'm with savemoresaveoften.
Everything that comes due is going into cash so far this year. There are some very good savings promos now - DUCA, Tandia, target Tang, and Hubert's one-year quarterly which is tantamount to a savings account in my books. Hopefully there will be more such promos when these end, but I feel I am already ahead even if there aren't.

Before the end of the year I will make my purchases at best available, so as to keep my ladders intact, but there is no rush from my point of view. I still have over 10 months in which to dither!

I can only hope we are correct, but it does seem like a reasonable assumption under the circumstances. It's hard to imagine rates going lower than what they are now at least, so not much downside risk.

I did cut short my ladder investments last year to mitigate the very low rates, with higher ones clearly on the horizon, so will be catching up on some of them with four year GICs, which are already better than almost all of last year's five year rates.

savemoresaveoften said
Mark my words, this time rates will need to go quite a bit higher than the 2020 level pre covid. GIC rates prob wont go lock step for the next 2-3 hikes, but once people realize by the fall/winter 2022 that BoC, Fed, BoE, ECB and others are far from done in raising rates, FIs and CUs will have no choice but to move their deposit rate and GICs higher as well. If anything the GIC curve will be a lot flatter btw 2y and 5y rates is my prediction.  

Most of what I predicted back in Feb is unfolding... 🙂